ESG & Sustainability — June 4, 2021

Forward-looking Climate Metrics: An introduction to the current global landscape

This paper:

  • Reviews some of the most prominent forward-looking climate metrics (FLCMs) that are currently available to investors, including proprietary methodologies developed by dedicated providers;
  • Discusses the challenges that still remain with respect to the coverage, standardization, and reliability of the data underpinning FLCMs;
  • Demonstrates the effect of such challenges by showing the divergence in estimated performance for the same companies using different data providers;
  • Concludes with a look at key implications for index design and climate transition at large.

Author

Rodolphe Bocquet

Global Head of Sustainable Investment

Anna Georgieva

Associate Principal, Sustainable Investment

Saumya Mehrotra

Associate Principal, Sustainable Investment